Petrol price in India is revised on a daily basis at 06:00 a.m. everyday. Hence making sure that even a minute change in global oil prices information is relayed to fuel users and dealers. Price of fuel depends upon various factors including VAT, excise duty, and dealer commission. While, if we talk about VAT, it varies from state to state. Hence, the retail selling price of petrol gets nearly doubled after including VAT, excise duty, and dealer commission.
Therefore, various aspects make up the rise and decline in the price of the petrol from cost of the crude oil, global cues, rupee to US dollar exchange rate, demand for fuel, among others.
There are benefits as well as challenges of daily revision in the prices of petrol in India. For example, it enables us to easily absorb the changes in daily petrol prices in India by a few paise.
While, the daily revision of petrol prices puts a considerable pressure for the consumers. Oil marketing companies such as Bharat Petroleum, Indian Oil, and Hindustan Petroleum revise the prices of the petrol based on the international prices.
If we compare India’s price in terms of fuel, it is horribly expensive for consumers than other neighbouring countries such as Sri Lanka, Pakistan and Bangladesh. And the reason behind it is the imposition of excise duty on petrol by the government of India.